The Federal High Court in Lagos has ordered commercial banks to restrict withdrawals from accounts operated by the Osun State Government over an outstanding $13.9 million arbitration award in favour of Gamji Nigeria Company Limited.
Justice D.E. Osiagor granted the interim order following an application filed by Gamji through its counsel, Yunus AbdulSalam, SAN, in a suit marked FHC/L/CS/1233/2026.
The court directed the affected financial institutions to immediately place a **“Post No Debit” (PND)** restriction on the state government’s accounts to preserve funds needed to settle the award.
The order covers $13,924,343.32 and an additional ₦157.5 million awarded to the company following an arbitration dispute over water infrastructure projects in Ilesa West Local Government Area of Osun State.
The affected banks include Guaranty Trust Bank, Access Bank, First Bank, Zenith Bank, United Bank for Africa, Ecobank, Fidelity Bank, Stanbic IBTC, Sterling Bank, Union Bank and Wema Bank, among others.
According to court documents, the dispute dates back to June 2017, when the Osun State Government awarded Gamji two contracts for water infrastructure development.
The projects involved the construction of transmission mains and booster pump stations, as well as water reservoirs under a broader water supply and sanitation programme.
The projects were reportedly financed through an Islamic Development Bank loan facility facilitated by the Federal Ministry of Finance.
Disagreements later emerged between the company and the state government over contract extensions, price adjustments and rising costs of materials and labour.
Following unsuccessful mediation efforts, the matter proceeded to arbitration, which resulted in a final award delivered on July 24, 2026.
The arbitral panel directed the Osun State Government to pay Gamji $13.9 million and ₦157.5 million in reimbursable arbitration fees. It also imposed an annual interest rate of 20 per cent on any outstanding balance after the stipulated payment period.
Gamji told the court that the August 24, 2026 deadline for compliance had expired without payment, prompting the company to seek judicial intervention to protect the funds.
In granting the interim application, Justice Osiagor ordered the banks to preserve the specified amounts pending the hearing and determination of the substantive motion.
The restriction is intended to prevent withdrawals or other debit transactions that could affect the recovery of the awarded sums.
The case has been adjourned until October 22, 2026, for further proceedings.
The latest development presents another legal challenge for the Osun State Government as it faces pressure to resolve the financial dispute and comply with the arbitration award.
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